U.S. stocks rebounded from Tuesday’s slump as a plunge in Treasuries on speculation interest rates may rise twice this year boosted financial shares. The dollar rose while emerging-market assets retreated.

Banks led gains in the S&P 500 Index, overshadowing renewed losses in consumer-linked companies amid concern retailers will struggle this year. Ten-year Treasury yields rose to a two-week high, and the dollar climbed to a seven-week high before Wednesday’s release of minutes from the Federal Open Market Committee’s last meeting. Copper and gold fell for the first time in four days.

The dollar is rebounding in May amid heightened speculation over the trajectory of higher U.S. borrowing costs. Better-than-expected data on consumer inflation, housing starts and industrial production yesterday prompted traders to boost the odds of a move in June threefold to 16 percent, fueling further gains in the U.S. currency and a selloff in shares. Minutes from the Fed’s April meeting today will be in focus after hawkish comments from regional presidents yesterday.

“With the strength of the CPI number yesterday, you saw some dollar strength yesterday and we are seeing that continue today,” said Robert Pavlik, who helps oversee $9.1 billion as chief market strategist at Boston Private Wealth. “We’re seeing some rotation out of the more defensive areas like staples and that relates to yesterday’s inflation concern coming in hotter than expected. That’s leading people to bring the Federal Reserve back on the table for the June meeting.”

Stocks

The S&P 500 rose 0.4 percent at 11:50 a.m. in New York, after slumping 0.9 percent yesterday. Bank shares in the benchmark headed for their best day in a month after JPMorgan Chase & Co., the largest U.S. bank by assets, raised its quarterly dividend.

The Stoxx Europe 600 Index added 0.5 percent after swinging between gains and losses. Burberry Group Plc dropped 2.4 percent after the luxury-goods retailer added to the industry’s gloom by posting a second straight drop in annual earnings.

The MSCI Asia Pacific Index lost 0.8 percent, led by declines in consumer-goods producers. Suzuki Motor Corp. plunged 9.4 percent in Tokyo after saying it used an improper method to test the fuel efficiency of its vehicles.

The pound jumped to a two-week high against the euro and reversed its drop against the dollar after a poll showed the campaign to keep Britain inside the European Union extended its lead. Sterling rose 1 percent to $1.4613 after dropping as much as 0.4 percent. The survey by the Evening Standard newspaper and Ipsos Mori put the “Remain” camp’s lead at 18 percentage points.

The rand led losses, tumbling 1.3 percent. South African Finance Minister Pravin Gordhan said rumors and accusations that he was involved with espionage are false and “malicious.” The Sunday Times newspaper has reported, citing people it didn’t identify, that Gordhan is at risk of being charged with espionage and fired.

Commodities

Copper fell along with other metals amid rising supplies and an uncertain demand outlook in China, the world’s top consumer. Antofagasta Plc, a Chilean copper producer, said it isn’t counting on an improving global economy and expects low copper prices for another year or two, according to a statement from Chairman Jean-Paul Luksic.

Copper for delivery in three months slid 1 percent. Gold for immediate delivery lost 0.7 percent.

Oil retreated 0.1 percent to $48.26 a barrel in New York after closing on Tuesday at the highest since Oct. 9. A government report will probably show that U.S. crude supplies fell by 3.5 million barrels last week after rising to the highest level since 1929 in April.Wildfires in Canada have shifted back toward oil-sands operations, forcing Suncor Energy Inc. to evacuate three sites it was restarting.

Bonds

The yield on U.S. two-year Treasuries climbed to 0.85 percent. The 10-year yield increased five basis points to 1.82 percent, the highest since May 2. That compares with a one-month low of 1.70 percent at the end of last week.

Jan Hatzius, the chief economist at Goldman Sachs Group Inc., warned that bond investors aren’t prepared for the Fed to raise interest rates despite officials having flagged the possibility of such a move.

“The market’s underestimating their willingness to follow through on what they say,” Hatzius said in an interview on Bloomberg Television. “If you look at where the yield curve is priced — how little normalization of monetary policy is discounted — that’s very striking.”

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Opt-out any time, we hate spam!

The tradersville.net is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of The tradersville.net are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

The sender of this email makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of The tradersville.net websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.

Disclaimer: Past performance is no guarantee of future performance. This product is for educational purposes only. Practical application of the products herein are at your own risk and The tradersville.net.com, its partners, representatives and employees assume no responsibility or liability for any use or mis-use of the product. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Any trades shown are hypothetical example and do not represent actual trades. Actual results may differ. Nothing here in constitutes a recommendation respecting the particular security illustrated.